Well, supposedly there's another 3 hour Raw in June, I think, so that will most likely be the draft.
As far as Hardy going over to Smackdown...it makes perfect sense. Smackdown is an area where you can test out someone as a champion. Raw's champions tend to be 3 guys...HHH, Cena, and "random heel" (lately portrayed by Randy Orton). With Jericho, HBK, HHH, Cena, and Kennedy now face, and with the possible move of Punk over to Raw which we've heard rumors of, Hardy has no spot on Raw. He'd be buried in no time. A move over to Smackdown puts him directly in line for a main event position (above Mysterio on the scale, I'd say, so he'd only be behind Undertaker and Batista).
Hardy/Regal...might happen...but then again, we thought Kennedy/Regal might happen and it seems they got rid of that already. I think its possible we might see Cena/Regal, too. However, only one can happen soon, cause I think its very likely we'll see Regal/HHH at Night of Champions.